Manfred Reinkemeier, owner and managing director of Abalon, explains why his company halted production this year. “We are not the ones who are brave because we stopped producing. It is rather those who keep up production despite decreasing sales revenue and rising costs. This is practically a cash drain,” he emphasizes. The economic challenges of the past 18 months remind him a lot of the financial crisis of 2008/2009. “Back then, overproduction, triggered by massive purchases of log wood in good years, met a sudden slump in demand. This time, I wanted to prevent that.”
It’s always better to react and shut down in a self-determined way. Now, after the reset, all processes are optimized, and the machines are fully serviced. We will slowly ramp up production in 2025, and then we will continue without any baggage from the past.
Consistent strategy with standard products as advantage
Log band saw: In the first processing step, each log is only cut on four sides © Holzkurier.com
In 2023, Reinkemeier consciously decided to adopt an anti-cyclical strategy: Production was stopped, and the market was served with pre-produced goods. “After years in permanent operation mode, it was simply time for a reset,” Reinkemeier says, looking back. “We produce standard products. That made it easier for us. With our two medium-sized sawmills and no further processing, we have established ourselves as an expert for a complete range of beech lumber products which we export to buyers around the globe.”
This timeout was used for a comprehensive modernization of the machines at both sawmills. In Heiligenkreuz, a new sawing machine was installed (see box), while €1 million was invested in demolition and renovation work in Schwalmstadt. “When the market is booming, there is rarely time for such measures. Now, we are making an anti-cyclical investment in order to be optimally positioned for the next upswing,” he explains.
Abalon focused on improving efficiency. For example, a new US band saw in Heiligenkreuz enables existing machines to operate closer to their maximum capacity. The goal is to achieve 15 to 20% more output while keeping costs stable.
Focus on efficiency
With the exception of the core team, which consists of 15 people, the workforce was temporarily laid off, but was guaranteed to be re-employed in time for the restart. During that phase, extensive maintenance work was carried out at the sites to optimally prepare the machines for the challenges ahead.
In 2024, Abalon was able to serve the market from a comfortable position: “We were able to sell our products from the warehouse at break-even prices,” Reinkemeier emphasizes. With modernized machines, the company is now planning to gradually resume production in 2025. Thanks to the optimized infrastructure and a stable financial situation, Abalon is ideally positioned to benefit from the possible market growth starting in 2026.
Perspectives and outlook
Reinkemeier is cautiously optimistic: “If there is geopolitical change, for example through an end to the war in Ukraine, this could have a special effect on the economy.” Thus, Abalon is an example of how consistent decisions and anti-cyclical investments can successfully position a company for the future, even in difficult times.
Facts about Abalon
Established in: November 2003
Owner/managing director: Manfred Reinkemeier
Production sites: Schwalmstadt and Heiligenkreuz
Total cutting volume: 150,000 m³/yr of log wood
Products: edge-trimmed beech lumber for global sales
Abalon’s plant concept 2025
Efficient cutting of beech logs à la USA
On “November 4, 2003 (10:00 a.m.)”, Manfred Reinkemeier acquired the Theurl & Tinzl sawmill in Heiligenkreuz, which had already failed even before it went into operation. After some radical changes to the sawmill, he started with “classic US technology” in January 2005. “The high level of debt at the start taught us to tighten our belt. From 2005 to 2022, we were just busy trying to survive, to develop and to get rid of as much baggage from the past as possible. After so many years of being at full throttle, it was time for a reset,” Reinkemeier says, looking back.
After the changes made, the process in Heiligenkreuz is as follows: After debarking, a cross conveyor feeds the beech logs to a log band saw which only cuts them on four sides, thereby largely eliminating the time-consuming turning of the logs.
Further cutting is done behind a second band saw, where the squared timber is guided in a circle (“run-around resaw”) and successively sawn. In the final step, Abalon Hardwood has two horizontal band saws at its disposal.
By investing in a second band saw for resawing, the company managed to eliminate a bottleneck and the capacity of the upstream band saws can be fully utilized. The target is to increase production by 15 to 20%.
In the future, Abalon will be able to process 1.5 logs per minute. The layout of the production line is based on a system which is particularly popular among hardwood processing companies on the US east coast. Abalon also relies on North American technology, specifically on McDonough, because of the extremely robust structure and reliability of the supplier’s machines.
